A. Sweepstakes Administration

CO-OP PROMOTIONS

A. SWEEPSTAKES ADMINISTRATION

1. Render advice on all phases of the offer during the planning of the Sweepstakes such as the operational recommendations, preparation of collateral materials, and practical knowledge of federal and state lottery laws, which may affect the promotions as they are currently interpreted and enforced in the United States.

2. Screen all Sweepstakes related copy, layouts, and mechanical for legal compliance, prior to the production of same.

3. Write rules for the Sweepstakes, which will govern the promotion, and submit rules to CO-OP PROMOTIONS legal counsel for review.

4. Register the promotion and file surety bonds in those states requiring same. IT IS THE RESPONSIBILITY OF THE SPONSOR OF THE SWEEPSTAKES TO OBTAIN THE ACTUAL SURETY BONDS AND FURNISH THEM TO CO-OP PROMOTIONS. These must be executed a minimum of thirty (30) days prior to the commencement of the promotion. Failure to do so may result in a fine. Florida, New York and Rhode Island have such laws. If requested, surety bonds can be obtained by CO-OP on behalf of the Sponsor; however, information required for registering this promotion must still be received by CO-OP with ample time to procure bond(s), obtain sponsor’s signature on bond(s) and complete the registration statements within the allotted time frame.

5. Receive or download all eligible on-line entries received to be used in the drawing.

6. Assign Post Office box(es) for receipt of mail in entries (3 ½” x 5” cards) and winner’s list requests.

7. Pick-up mail at the Post Office and secure. Report weekly on the quantity of eligible entries received.

8. Coordinate Sweepstakes entry and drawing procedures with you and conduct the random drawing from among all eligible on and off-line entries received to select the winners.

9. Submit names of Sweepstakes prize winners to you for approval before winner notification begins.

10. In a timely manner, arrange for affidavit clearance for Sweepstakes grand prize winner, and notify prize winner(s) by mail.

11. Submit IRS Form 1099 - MISC Information to IRS and grand prize winner (prizes that we award in excess of $600), within the time limit set forth by the IRS.

12. At the conclusion of promotion, obtain release of the bonds from those states, which required same, on a timely basis as mandated by the laws in those states. B. GUARANTEES

1. CO-OP PROMOTIONS guarantees that all information relating to any offer (but not limited to) responses and redemption is secure against unauthorized use.

2. We warrant and agree that our services will be performed on a completely independent and confidential basis regarding drawings for winners.

C. PROMOTION COSTS Item Description Cost CO-OPPROMOTIONS Promotional consulting, management, legal and winner selection $12,500.00 Sweepstakes Supervision Fee Winner Affidavits/ For notification and verification of winner eligibility, $50.00 (1 Grand $ 50.00 Notifications Prize Winners). State Registration and Filing $300 per state, required for New York, Florida and Rhode Island – if $900.00 Fees the total value of prize structure exceeds $5,000. Clerical Special clerical requests (on and off-line) charged at $50 per hour in $50 per hour addition to the regular web page development fee itemized below. or time & a All programming rush orders will be charged as detailed below plus half time and a half. Domain Name Registration Registration of a unique domain name @ $200 per domain name. $200 Data Entry If requested, CO-OP will key information from all mail-in entries $75.00 + received @ $270/M, plus a one-time programming set-up fee of $75.00. $270/M Online Entry Processing To use CO-OP’S Online Entry Processor, there is a one-time per $1,250 set-up (OEP) project set-up charge of $1,250. Entry processing and storage on CO- fee OP’S server costs: $45 per thousand. Processing fee is invoiced plus monthly. There is a monthly minimum of $250. $250 per If OEP is not utilized: To receive text or spreadsheet file of online month entry data from client/sponsor or web service provider, $5 Per M entries or $65.00 per file, whichever is greater. Postage, Overnight Courier Any postage or overnight courier charges incurred, invoiced at cost. TBD Charges Post Office Box Rentals If requested, post office boxes may be assigned for receipt of entries, TBD requests for entries, rules or winner’s list. Post Office Boxes are billed @ $375 per Box, per Quarter, from time of assignment. Fulfillment of Requests Fulfillment of winner’s list requests ($250 Minimum), plus printing of $250 Min. winner’s lists at cost. each Fulfillment of game cards, entry forms, rules @ $250/M or $250 Minimum each. Destruction of Mail For destruction of all sweepstakes mail received, @ $495 per M or $495.00 $495.00 Minimum. Client may request that all entries be shipped to them at end of promotion. Shipping and handling of entries will be invoiced separately, at cost. Miscellaneous Sales taxes, if any will be invoiced at cost. Any out-of-pocket expenses will be invoiced at cost, plus 17.65%. Storage of Prizes Storage of prizes will be billed @ $10.00 per pallet, per month from the TBD first date any merchandise/items is received until all merchandise has been used/removed from the premises. Procurement of Prizes CO-OP will procure prizes on behalf of client at cost, plus standard TBD agency commission of 17.65% per prize. Fulfillment of Prizes Servicing: Preparation of mailing label, congratulatory buck slip, TBD packaging required for each prize, insertion of prize(s) & buck slip into mailer, affixing label and postage, ship as directed, billing TBD once sample of prize has been submitted, plus actual postage. Termination If the project is canceled or postponed by sponsor/client, for any reason whatsoever, after the official rules are in their final stages, a fee of $5,000 shall be immediately due CO-OP without deduction or allowance. Miscellaneous Sales taxes, if any will be invoiced at cost. Any out-of-pocket expenses will be invoiced at cost, plus 17.65%.

Online Entry Processing (OEP) The Online Entry Processor from CO-OP enables you to implement online sweepstakes easily, by providing you with the technology to make your online entry form a fully functional, secure administrative tool. This online tool was designed to mimic standard entry capture in traditional promotions, and functions much like a PO Box does for mail-in entries.

The process is simple, and takes much of the strain off you by letting you avoid the added time and costs associated with database and data-security programming.

Using the Online Entry Processor entitles you to have access to “real time” activity reporting of online entry activity.

To use CO-OP’s Online Entry Processor, there is a one-time per project set-up charge of $1,250. Entry processing and storage on CO-OP’s server costs: $45 per thousand. There is a monthly minimum of $250.

IMPORTANT NOTE: The Online Entry Processor (OEP) was designed to capture entry information in order for CO-OP to randomly select prize winners at the conclusion of the promotion. The information collected is the property of the promotion sponsor(s). The data may not be formatted in a fashion suitable for marketing analysis by the sponsor(s). If requested, CO- OP will provide a quotation to modify the OEP so that the entrant database will be compatible with sponsor’s data analysis tools. This service can be provided at $250 per hour.

D. TERMS OF PAYMENT 1. CO-OP fee due upon signing of contract. Additional expenses due upon presentation of invoice.

2. The prices quoted herein may be increased in the event of any increased cost to CO-OP, with prior written approval by Client. Any additional out of pocket expenses will be invoiced at cost plus 17.65%, subject to prior written approval by Client.

3. Sales taxes, if any; postage and overnight courier charges incurred will be invoiced at cost.

4. If any project is canceled or postponed by Client/Sponsor for any reason whatsoever a fee of $5,000 shall be immediately due CO-OP, without deduction or allowance, in lieu of the CO- OP Administrative Fee. This cancellation clause is applicable only on those projects in which CO-OP authors the rules, and is applicable to both sweepstakes.